Year-End Tax Planning Tips for Investors: Tax Help Reducing Tax Liabilities and Avoiding IRS Audits
What investors need do as the year draws to a close is take advantage of opportunities to improve their tax situation by getting the tax help they need to make strategic decisions for managing their investment portfolios.
However, with the current recession and federal tax revenues declining, investors should be aware that the IRS is going to take every step it can to collect what’s due. So the most important tax tip of the year is to file an accurate tax return to reduce your chances of an IRS audit This includes understanding how to reduce your tax liability, as well as being smart about doing everything in your ability to reduce the chances that your return will be picked for audit, which would cost you more in the long run – especially if you don’t get professional tax help!
Here are some tax tips for investors that will help you stay on the right side of the IRS!
- When considering tax rates for both short- and long-term stock gains and qualified cash dividends, keep in mind that some of the favorable rates we’ve seen may not continue beyond 2010- so if you need to sell any investments, it may be wise to cash in your gains in 2009
- Many taxpayers may have seen their stock decline in value – and for those tempted to sell the stock to recognize the loss, it’s important to know that net capital losses can be deducted dollar-for-dollar against ordinary income, up to $3,000 a year. Excess capital losses above $3,000 can be carried over to the following year.
- If you are thinking of buying back the same stock after it rebounds, be willing to wait 31 days to re-purchase the stock as the IRS tax code won’t allow you to take the loss if you purchase identical stock within 30 days before or after you sell your shares.
Make sure that you stay current and know the most recent IRS rules when filing your taxes. If you’ve been targeted by the IRS or need help resolving filing delinquent taxes, contact our team of expert CPAs, tax attorneys, and tax resolution specialists at 866-IRS-PROBLEMS (1-866-477-7762) for a free consultation.
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Tags: deducting capital losses, deducting investment losses, IRS audits, irs problems, tax attorneys, tax help, tax tips for investors, year-end tax tips
